Policy Interpretation: China Cancels Export Tax Rebate for PVC Raw Materials
Effective April 1, 2026, China will cancel the 13% VAT export rebate on PVC pure powder, unplasticized PVC, and plasticized PVC.
Why This Policy?
This move is part of China's broader effort to promote high-quality industrial development and curb "involution-style" low-price competition. By removing the rebate, the policy aims to:
• Phase out outdated, low-efficiency production capacity
• Encourage industry focus on quality and innovation over price wars
• Align with international trade practices
Key Impacts
1. Cost Increase
Based on current domestic PVC prices, export costs will rise by approximately $75 per ton after April 1, 2026.
2. Window Period (Now – March 31, 2026)
Orders shipped before April 1 still qualify for the 13% rebate, creating a short-term opportunity for buyers to secure current pricing.
3. Long-Term Price Trend
The removal of the rebate will lead to a moderate, sustainable upward adjustment in PVC pricing as the market establishes a new cost structure.
4. Supply Stability Remains
China will continue to be the world's leading PVC supplier. Supply capacity and product quality will not be affected by this policy change.
What This Means for Buyers
Now – Mar 31:Pre-policy window
Considering advancing orders to lock in current pricing is a better choice.
After Apr 1:New pricing structure
We suggest planning procurement ahead and expect gradual price adjustments.
Industry Outlook
This policy accelerates positive structural changes in the PVC industry:
• Capacity consolidation: Inefficient producers will exit, strengthening reliable suppliers
• Quality focus: Manufacturers will invest more in product development and value-added offerings
• Stable supply chain: The market will shift from price-driven to value-driven competition
Our Commitment
As your trusted partner, we will:
• Provide transparent, timely pricing information
• Maintain stable supply and consistent quality
• Work with you to navigate market changes together
Contact us to discuss your procurement plans and learn how we can support your projects.
